BTC bottomed at 7300?What is Parabolic Move?
In purely mathematical terms, a parabolic move is an exponential rise. Parabolic Curve chart patterns are generated when steep rise in prices are caused by irrational buying and intense speculation. Parabolic curve patterns are rare but they are reliable and are generated in mega bull trends. These patterns trend gradually making higher highs and lower lows in the beginning stages but can be volatile in the exhaustion and reversal stages.
Irrational buying in the public generates a strong rally to push prices vertically, followed by a steep sell off. Examples of this market types are the NASDAQ bullish markets during 1990–2000 (retraced 80%) and Gold prices from 2000–2011 (retraced 62%).
Parabolic curve is a reversal pattern and has a very predictable outcome. Although they are predictable, they are relatively difficult to trade since the market sentiment is bullish and may be relatively tough to point reversals to trade. Most Parabolic curve patterns have a significant correction of 62–79% of its price rise (from the top).
The basic ideas behind Parabolic curve patterns:
— Pattern is easy to spot but difficult to trade with excessive volatility.
— Most Patterns retrace to 62–78% of its rise. 50% retracement is first target.
BTC moved from 3.337 to 13.868 = $10.530 with %315.49 increase
From $13.868 to $7296 = $6.572 with %48 (correction) retracement.
Are we done here or there is another %30 drop coming?
